Hi! Doing my annual rebalancing and across a few accounts, I use 2 funds to replicate VTI (VOO+VXF equivalents) and VXUS (VEA + VWO equivalents). The challenge that I am having is that with the recent outperformance of large caps (i.e. tech) in the US, that the weighting of VOO and VXF has changed. In prior years, I used ~82-83% VOO with the remainder being VXF.
I see that the "approximating total stock market" page on the Forum has updated the weighting to 85% VOO and 15% VXF with their mutual fund equivalents in June of 2024.
I recently re-ran the weightings through Morningstar's portfolio x-ray tool and found that 86% VOO and 14% VXF was closer replicating VTI as far as the Morningstar style box was concerned.
This brings me to my question - what is the best way to validate appropriate weightings of two funds in order to best replicate VTI? I'm looking to check my homework before pulling the trigger on my annual rebalancing.
I see that the "approximating total stock market" page on the Forum has updated the weighting to 85% VOO and 15% VXF with their mutual fund equivalents in June of 2024.
I recently re-ran the weightings through Morningstar's portfolio x-ray tool and found that 86% VOO and 14% VXF was closer replicating VTI as far as the Morningstar style box was concerned.
This brings me to my question - what is the best way to validate appropriate weightings of two funds in order to best replicate VTI? I'm looking to check my homework before pulling the trigger on my annual rebalancing.
Statistics: Posted by Francis42 — Wed Jan 01, 2025 11:37 am — Replies 0 — Views 52